Embrace the pessimism

The journalists and economists are at it again, trying their best to use ‘last month’s’ news to scare their readers, investors and clients.

The emphasis is that it’s news. They are only reporting what has already happened.

Firstly, not many (if any) of these pundits take risk, let alone invest their own money or do so for anyone else. Ahhh… the safety of the ivory tower and a salary.

Secondly, the headline of Australian consumer confidence being at 30-year lows is incorrect.

https://www.afr.com/policy/economy/consumer-confidence-plunges-to-30-year-low-after-rba-rate-rise-20261006-p61389

Thirdly, professional investors see extremes in pessimism as a moment to increase exposure to ‘risk’.

Fourthly, what does such pessimism in consumer confidence translate to when looking at the stock market?

October 6, 2026